The gas retail trade is real business — Kenya's LPG demand keeps growing. But it's a licensed industry, and cutting the licensing corner is what lands people in EPRA enforcement. Here's the legitimate route.
The Business Model
You become a brand's retail dealer — you stock their sealed cylinders, customers exchange empties for fulls, you return empties for refilled stock. Your margin is the difference between wholesale and retail refill price.
Licensing — The Non-Negotiables
- EPRA retail licence — the Energy and Petroleum Regulatory Authority licenses LPG retail. Apply via their portal; expect site inspection.
- County business permit — standard single business permit.
- Brand dealership agreement — sign with the brand(s) you'll stock (each brand has dealer requirements).
- Fire safety certificate — county fire department inspects storage.
Operating without EPRA licensing = illegal refilling territory — seizure and prosecution. Why the rules exist.
Startup Costs (Realistic Ranges)
| Item | Cost |
|---|---|
| EPRA licence + permits | ~KSh 15,000–40,000 |
| Initial cylinder stock (20–30 × 13kg) | ~KSh 120,000–200,000 |
| Compliant storage (ventilated, secured, signposted) | ~KSh 30,000–80,000 |
| Fire equipment, signage, PPE | ~KSh 15,000–30,000 |
| Delivery setup (boda partnership or rider) | Variable |
Realistic launch: KSh 200,000–400,000 for a serious small outlet.
Margins
Dealer margin on a 13kg refill typically runs KSh 150–350 depending on brand and negotiated wholesale. At 15–25 refills daily, that's a working business; volume and location decide it. Accessories (regulators, hoses, burners) carry fatter margins and lift the basket.
Location Strategy
- Dense residential estates — refill frequency is your revenue engine.
- Visibility + access — riders and customers must reach you; a corner shop on a busy estate road wins.
- Compliant storage — EPRA inspects: ventilated, away from ignition, secured, signposted. Plan the site before licensing.
What Kills New Gas Businesses
- Skipping EPRA licensing to save fees — enforcement seizures wipe out the whole stock.
- Stocking slow brands — inventory is capital sitting in steel; carry what your estate actually uses.
- No delivery channel — the market expects doorstep delivery now.
- Selling decanted gas "on the side" — the fastest route to licence loss and prosecution.
Frequently Asked Questions
Can I stock multiple brands?
Yes — multi-brand dealerships are common; each needs its own agreement and you manage separate empty/fill cycles.
Is the gas business still profitable?
With real volume and compliance, yes — demand grows steadily. The margin is thin per unit; volume and accessories carry it.
Where do I get cylinders to start?
Through your dealership agreement — brands supply initial stock (often deposit-based).
Research first: see all the brands, current pricing and what makes stock genuine before you invest.